Does the 4wd shifter and or transfer case have to be engaged to drive the truck in normal 2wd or does it have to be showing H2?

 

H2 is High 2WD, H4 is High 4WD, Yes you need H2 for driving on the highway unless its icey or snow on the roads

 

the t-case must be engaged in H2 to drive in 2wd. The other positions are 4H, Neutral, and 4L. the 4's are 4 high, and 4 low respectively, and neutral is neutral.

 

This is sort of related: Isn't there a mod out there, I think I read about it once, where you can cut the shift plate in two and somehow get a position for 2L also?

Either way.... Yes, in order for you vehicle to move, the transfer case (as well as the transmission) must be engaged into a gear of your choice... for normal driving the gear I would choice/suggest is 2H.

On a side note, if the vehicle is going to be flat towed both should be in neutral

 

4L + hubs unlocked = 2L. People will say it's not a true low range but it doesn't hurt anything.

Kinda fun to get out and walk beside your truck when it's idling down the driveway (Please tell me I'm not the only one who does this )

 

Never even thought about that..... and yes, I've walked along side my truck too

 

you don't have to cut anthing. Get a twin stick, and follow the directions on Marlin's site. You'll have a lever for 2wd/4wd, and Hi/low.

With my crawler gears, i can get out and walk beside my truck while it idles up a trail or obstacle. That really raises some eyebrows.